The World Bank is updating its procurement requirements to address the pressing challenge of job creation in developing countries. Beginning September 1, 2025, companies bidding on international civil works contracts—such as those involving transportation and energy infrastructure—under World Bank-funded projects will be required to allocate at least 30% of labor costs to local labor. This policy aims to promote domestic employment and skills development in communities where projects are implemented.
The new requirement recognizes the potential of public infrastructure projects to drive local economic growth. By mandating local labor participation, the World Bank intends to support income generation, capacity-building, and community reinvestment. With an estimated 1.2 billion young people expected to enter the workforce in emerging economies over the next decade, these changes aim to create meaningful employment opportunities and enhance workforce readiness.
This initiative builds upon reforms introduced in March 2025, which strengthened the World Bank’s procurement framework to improve outcomes in investment projects. Those reforms emphasized quality in bid evaluations, encouraging innovation, sustainability, life-cycle cost efficiency, and now, the prioritization of local job creation. Together, these measures are designed to attract top-tier bidders while maximizing the developmental impact of Bank-financed contracts.
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